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Uber is shutting down Drizly, the alcohol supply service it acquired for $1.1 billion in 2021. The shutdown comes as Uber appears to be like to consolidate its meals supply providers all beneath the Uber Eats model.
Drizly was initially based in 2012. The corporate was acquired by Uber in 2021 when the world was nonetheless reeling from the pandemic, lockdowns, and work-from-home orders, whereas hesitancy concerning the virus triggered Uber to see a drop within the variety of clients who used its ridesharing service. In the course of the early pandemic years, Uber leaned closely on its supply providers like Uber Eats to complement its ridesharing earnings slowdown. This concentrate on supply made Drizly an attractive acquisition for Uber.
Whereas Drizly was probably the most common alcohol supply providers in America, it wasn’t with out controversy. In 2020, the corporate acknowledged a cyberattack wherein round 2.5 million clients had their knowledge compromised due to a safety flaw that the corporate had been conscious of for 2 years. After Uber’s buy of Drizly, the Federal Commerce Fee (FTC) positioned restrictions on what buyer knowledge Drizly may accumulate as a result of hack.
As for why the corporate is shuttering Drizly now, Uber’s SVP of supply, Dimitri Gore-Coty, told Axios, which first reported the shutdown, “After three years of Drizly working independently throughout the Uber household, we’ve determined to shut the enterprise and concentrate on our core Uber Eats technique of serving to shoppers get nearly something — from meals to groceries to alcohol — all on a single app.”
A spokesperson for Uber confirmed the Axios report with Quick Firm, and mentioned Drizly will formally shut down by the top of March. The corporate additionally sunsetted its Cornershop grocery supply app because it goals to fold all of its providers right into a single app, noting that its shoppers more and more choose the one-stop store comfort. Uber says that its BevAlc supply class on UberEats greater than doubled within the final yr.
Replace, January 16, 2024: This text has been up to date with a press release from Uber.
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